VAT on turnover deal??

inthethickofit

Free Member
Jul 25, 2010
14
1
We're occupying a unit in a shopping centre for 4 days soon. We did the same thing last year (for 10 days) and paid rent (+VAT) + 10% (no VAT) of our takings to the centre.
This time however, we are only paying a 22% of our turnover (no rent, as its only for 4 days).. i've just received the booking form, and it states the 22% + VAT-surely they can't charge VAT on OUR turnover- we didn't pay VAT on the turnover % last time. we are not VAT registered (not sure if that makes any difference?)
What do i do? It may be an admin error, but i'd like to know where i stand before I dispute it. we are in a bit of a position now, as we have ordered our stock so have to be in there.
 

inthethickofit

Free Member
Jul 25, 2010
14
1
spoke to HMRC- they said they can charge VAT on rent if they have 'opted to tax'.. not sure if they have or not.. but my query is, last time we paid VAT on the rent only- we didn't pay VAT on the 'commission' that we paid them; so why should be have to pay them VAT this time?

Last time, we told them what the commission will be and paid that directly to them with no VAT- they didn't have to invoice us or anything .. can't see how it can be any different this time?:|
 
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